Nebraska Auditor of Public Accounts
Budget Form
Instruction Manual
This Manual is provided to assist Nebraska political subdivisions in
preparing/completing their Budget Forms in compliance with State
Statutes. The information contained within is intended to be
consistent with relevant State Statutes.
NEBRASKA AUDITOR OF PUBLIC ACCOUNTS
State Capitol, Suite 2303
PO Box 98917
Lincoln, Nebraska 68509-8917
Phone: 402-471-2111
Fax: 402-471-3301
Questions - E-Mail: [email protected]
Website: http://www.auditors.nebraska.gov
Submit Your Budget Online: From website choose “SUBMIT your Audit or Budget” from left side.
Follow the steps.
5-1-2014
TABLE OF CONTENTS
SECTION 1
(Page 1)
Checklist of Items to be Completed and Submitted
SECTION 2
(Pages 2 - 4)
Overall Basic Budget Information
SECTION 3
(Pages 5 - 12)
Budget Form Instructions
SECTION 4
(Pages 13 - 14)
Setting the Levy
5-1-2014
Checklist of Items to be Completed and Submitted
The complete budget document is due by SEPTEMBER 20th, it should include the following:
1.
2.
3.
4.
5.
6.
7.
8.
Page 1 (Cover Page):
Total Personal and Real Property Tax Required agrees to the amount on the bottom of Page 2, Total
Property Tax Requirement.
Outstanding Bonded Indebtedness Section was completed. (If Applicable)
The appropriate person has signed page 1 where indicated.
Audit Waiver request is indicated by checking the box.
SID’s Only - Complete the Date the SID was formed if Less than 5 years old.
Total Certified Valuation was completed.
Joint Public Agency & Interlocal Interlocal Agreements is indicated by checking the box.
Trade Names, Corporate Names & Business Names is indicated by checking the box.
Page 2 (Budget Form):
Column 1, Line 5 agrees to last year’s budget form Column 1, Line 30. If not, provide explanation.
Column 1, Line 30 agrees to Column 2, Line 5.
Column 2, Line 30 agrees to Column 3, Line 5.
Column 3, Line 30 is equal or greater than zero. Cannot budget to have a negative fund balance.
Transfers IN (Line 16) agree to Transfers OUT (Line 28).
Page 2-A (Transfer Page, If Applicable):
Transfers noted on Page 2, Column 2 are explained.
Page 3 (Correspondence Page):
Correspondence Information is completed, indicating Contact For Correspondence.
Page 4 (LC-3 Supporting Schedule):
Total Personal and Real Property Tax Requirements (1) agrees to amount on bottom of Page 2, Total
Property Tax Requirement.
Other Restricted Funds agree to amounts in Column 3, Page 2.
Capital Improvement Lid Exceptions Line (5) agrees to last year’s budget Page 4, Line (10).
Line (7) agrees to Line (11).
Pages 5 & 6 (LC-3 Computation Form):
Line (1) agrees to last year’s budget Page 6, Line (8).
Line (10) is greater than or equal to zero.
Page 7 (Levy Limit Form, If Applicable):
Total Personal and Real Property Tax Request (1) agrees to amount on bottom of Page 2, Total
Property Tax Requirement.
Attachments:
Certification of Valuation(s). (From County Assessor)
Board minutes approving Budget.
Publisher’s Affidavit of Publication for the Notice of Budget Hearing.
Board minutes documenting request for Audit Waiver. (If Applicable)
Board minutes showing at least 75% Board approval for additional 1% increase in the Restricted
Funds Subject to Limitation. (If Applicable)
Special election Sample Ballot and Results or townhall meeting Record of Action. (If Applicable)
(Fire Districts Only) Board minutes approving a special tax for a Public Safety Communication
Project. (If Applicable)
Resolution authorizing bonds for Public Facilities Construction Projects. (If Applicable)
Report of Interlocal Agreements. Due on or before December 31st.
Section 1
BUDGET FORM INSTRUCTION MANUAL
Page 1 of 14
Overall Basic Budget Information
1.
Required Filers
Does your subdivision need to file a budget? Please read the following carefully.
Will your subdivision have a property tax request or receive state aid as defined in section
13-518 for the budget year?
YES – You will be required to file a budget.
NO – Complete the Postcard Form and mail or e-mail information to [email protected]
with the Subdivision Name, a Contact Name, Address, and E-Mail. You are finished with the
requirements of the Nebraska Budget Act for this budget year.
REMINDER: Your political subdivision will still be required to file the following:
 An audit or request an audit waiver. If requesting an audit waiver, please complete
a separate Audit Waiver Form.

2.
The Report of Joint Public Agency and Interlocal Agreements due on or before
December 31.
Budget Filing Date
Budgets are due September 20 – Budget documents must be filed with the following:
The County Board (c/o County Clerk)
The Auditor of Public Accounts
 Mail – PO Box 98917 – Lincoln, Nebraska 68509-8917.
-or Submit Online – From our website (www.auditors.nebraska.gov) select “Submit
your Audit or Budget” from the left side. Follow the steps.
When submitting/mailing budget documents we strongly recommend the documents be
securely stapled or clipped together.
Reminder: Don’t forget to make a copy for your records.
3.
Forms
How Do I Get My Budget Forms?
Budget forms may be downloaded and printed from the Auditor of Public
Accounts website at:
www.auditors.nebraska.gov
Click on “Forms” from the “Local Government Budgets” button on the left side of the screen.
Then select “2014-2015 Budget Forms and Information.” Select your type of subdivision (i.e.
SIDs, General Budgets) from the list. If your specific subdivision is not listed you will need to
use General Budgets. This page includes everything you need to complete your budget filing,
including sample forms, budget document which includes supporting schedules and notices, and
an Excel version of the budget document.
Section 2
BUDGET FORM INSTRUCTION MANUAL
Page 2 of 14
Overall Basic Budget Information
Budget items are available in Microsoft Excel complete with formulas.
o
To utilize, click on the link for the Excel version of the budget you need and save
the file to your computer.
If you are not able to print or download the necessary forms, please contact us by:
Phone: (402) 471-2111, Fax: (402) 471-3301, or E-Mail: [email protected].
4.
Notice Requirements
Your political subdivision is required to give notice of one or both of the following at least five
days prior to the date of the hearing. You must include a copy along with the affidavit of
publication for all notices with the budget that is filed with the Auditor of Public Accounts and
the County Board.
Notice of Budget Hearing – All Subdivisions – State Statute Section 13-506 outlines what
must be included in the Notice.

The budget information may be published in a summary format, but detail
information must be available for public review.

We have provided a sample form for the Notice of Budget Hearing which includes
detailed instructions.

Notice can be given in one of the following methods:
Published in a newspaper of general circulation within the governing body’s
jurisdiction.
Posted at the governing body’s principal headquarters. This option is
available only if the total budget of disbursements and transfers does not
exceed $10,000. Please provide details of where and when your notice was
posted.
Notice of Special Hearing to set Property Tax Request – If subdivision has a Levy Limit

Required by State Statute Section 77-1601.02

Notice must be published

Hearing may be held on the same day as the Budget Hearing, as long as notice has
been given for both hearings
NOTE: A sample of a combination notice, which combines the information for the two
hearings can be found as a sheet tab in Excel and in the Samples Packet.
5.
If the Budget Adopted is Different than the Previously Published Budget


Section 2
Notice of the Summary of Changes must be made within twenty days after its adoption
setting forth the items changed and the reasons for such changes.
o
The notice of the summary of changes must be provided in the same manner as the
original notice of budget hearing (published or posted).
o
No public hearing is required as long as the summary of changes is published
within twenty days.
If a notice of the summary of changes is not provided within twenty days; the budget has
not been legally adopted. The governing body must conduct another budget hearing,
giving proper notice, and re-adopt its budget
BUDGET FORM INSTRUCTION MANUAL
Page 3 of 14
Overall Basic Budget Information
6.
If the Budget Contains a Clerical, Mathematical, or Accounting Error
State Statute Section 13-511 allows certain corrections to be made without having a public
hearing. Section 13-511 states within thirty days after the adoption of the budget, a governing
body may, or within thirty days after notification of an error by the State Auditor, a governing
body shall, correct an adopted budget which contains a clerical, mathematical, or accounting
error.
If the error does not affect the total amount budgeted by more than one percent, or increase the
amount required from property taxes; no public hearing is required for such a correction.
7.
Amending a Previously Adopted Budget
Political subdivisions have the ability to amend their previously adopted budget during the fiscal
year if unanticipated circumstances arise. By law, the total budget of disbursements and
transfers per the adopted or amended budget cannot be exceeded. Keep in mind it is not possible
to change the amount of property taxes after the levies are finalized.
State Statute Section 13-511 specifies the requirements necessary to amend the budget. A public
hearing must be held with notice given at least five days in advance. The notice must be given in
the same manner as the original budget hearing (published or posted), and the notice must
include the following:

The time and place of the hearing.

The amount in dollars of additional or reduced money required and its purpose.

A statement setting forth the nature of the unanticipated circumstances and, if the budget is
increased, why the previously adopted budget cannot be reduced during the remainder of
the year.

A copy of the summary of the originally adopted budget previously published.
A copy of the revised budget as adopted must be filed with the County Board and the
Auditor of Public Accounts.
Section 2
BUDGET FORM INSTRUCTION MANUAL
Page 4 of 14
Budget Form Instructions
8.
Cover Page (Page 1)
A.
Complete the name of the political subdivision and the dates of the budget period. If using
Excel version, input name and hearing dates and time on first sheet tab labeled “Must
Complete This Page.”
B.
Complete the Personal and Real Property Tax Required section.
Separate the personal and real property tax amount required for payment of principal and
interest on bonds and the amount required for all other purposes as required by State
Statute Section 13-508.
C.
Complete the Outstanding Bonded Indebtedness section as of the beginning of the fiscal
year.

Complete only if bonds have been issued.

Input the dollar amount your political subdivision still owes for principal and interest
payments.
D.
Complete the Budget Document to be used as the Audit Waiver section.

Political subdivisions that have the ability to request an audit waiver can use the
Budget Document for the audit waiver request.
o
Column 2, page 2 must be completed using actual numbers.
o
Minutes must be attached documenting the waiver was requested by the board.
o
DO NOT submit a separate Audit Waiver Request Form.
E.
The appropriate person (Clerk/Board Member) of the governing body must sign where
indicated.
F.
Complete the Interlocal Agreement section. All political subdivisions must file the Report
of Joint Public Agency and Interlocal Agreements with the Auditor of Public Accounts by
December 31st each year. If your political subdivision was not a party to any interlocal
agreements during the period July 1 through June 30, please mark the box. If the political
subdivision was a party to an Interlocal Agreement please submit the separate report to the
Auditor of Public Accounts.
G.
Complete the Trade Name section. All political subdivisions must file the Report of Trade
Names, Corporate Names, and Business Names with the Auditor or Public Accounts by
December 31st each year. If your subdivision operated a function under a name other than
the name of the political subdivision, you need to report those names on the separate Trade
Name Report. For example, if ABC City operated a hospital under the name Memorial
Hospital, than they would need to report that name on the Trade Name Report.
H.
SIDs Only – If the Sanitary and Improvement District is less than 5 years old, please
check the box and note the date the SID was formed. The Lid on Restricted Funds and
Levy Limit will not apply.
Section 3
BUDGET FORM INSTRUCTION MANUAL
Page 5 of 14
Budget Form Instructions
9.
Total All Funds (Page 2)
Your political subdivision is only required to file your budget information in summary format. If
your political subdivision has more than one fund the General Budget Form Worksheet tab in the
excel file may be helpful. All activity must be reported on this page no matter how many funds
you use for accounting purposes.
A.
Beginning Balances:



B.
Net cash balance – includes any cash on hand, and checking account balances at the
beginning of the year.
Investments – CD’s, savings accounts, etc.
County Treasurer’s Balance – Required by State Statute Section 13-504
o
Contact your County Treasurer to obtain this balance.
o
Balance should be included in receipts.
 For example, if your Treasurer’s balance at June 30, 2012, is $5,000, you
would need to include the $5,000 as receipts for the year ending June 30,
2012. This will increase your ending balance by $5,000 and when you
breakout your beginning balance for the budget year it would be included as
the County Treasurer’s Balance.
Receipts:
Receipts include the following:

Personal and Real Property Taxes
o Should be adjusted to include the County Treasurer’s balance. The calculation for
Property Tax Receipts is as follows: (Personal and Real Property Taxes received
by the subdivision) + (Year end County Treasurer’s Balance) – (Beginning
County Treasurer’s Balance)

Federal Receipts

State Receipts
o Motor Vehicle Pro-Rate
o State Aid
o Property Tax Credit
o Other – Any receipts from the state not identified above including Homestead
Exemption.

Local Receipts
o Nameplate Capacity Tax
o In Lieu of Tax
o Other – Any receipts from other local sources not identified above including
registered warrants.

Transfers
o Must agree to Transfers Out in the Disbursements and Transfers Section.
o Separate between surplus fees and other transfers

Section 3
Total Resources Available is the total of the Beginning balances plus all receipts.
BUDGET FORM INSTRUCTION MANUAL
Page 6 of 14
Budget Form Instructions

C.
D.
E.
Section 3
Total Resources Available must equal Total Disbursements & Transfers plus Cash
Reserve to present a Balanced Budget. YOU MUST PRESENT A BALANCED
BUDGET.
Disbursements & Transfers (Municipalities see Specific Guidelines):

Disbursements include the following:
o Operating Expenses – General expenses of the subdivision
o Capital Improvements
 Acquisition of real property (land/buildings)
 Improvements of real property
o Other Capital Outlay – Inventory items such as equipment and vehicles
o Debt Service
o Judgments
o Transfers
 Must agree to Transfers In found in the Receipts Section.
 Separate between surplus fees and other transfers

Total Disbursements & Transfers – For the budget column, this is the amount legally
available to be spent by the political subdivision during the fiscal year upon the
adoption of the budget.
Balance Forward/Cash Reserve:

Balance Forward (Columns 1 and 2) is the difference between Total Resources
Available and Total Disbursements & Transfers. This amount must agree to the
Subtotal of Beginning Balances for the next year.

Cash Reserves (Column 3) are an extremely important element of budgeting and
provide a stable flow of cash during your fiscal year. By law, you are entitled to a
cash reserve not to exceed fifty percent of the Total Budget of Disbursements &
Transfers less capital outlay.
Property Tax Recap

Tax from Line 6 – The amount of personal and real property tax your political
subdivision budgeted to receive in the Receipts section of the budget.

County Treasurer’s Commission – The County Treasurer receives a percentage
collection fee (commission) from tax collections received in that office.
o 1% for municipalities, community colleges, educational service units, natural
resources districts, drainage districts, and irrigation districts.
o 2% for all other political subdivisions

Delinquent Tax Allowance
o Allows you to budget for delinquent taxes.
o The delinquent tax allowance may not exceed 5% of personal and real property
tax requested plus the actual percentage of prior year delinquency.
 If you apply a percentage greater than 5%, you must provide supporting
documentation of the actual delinquency rate.
BUDGET FORM INSTRUCTION MANUAL
Page 7 of 14
Budget Form Instructions

10.
Page 2-A


11.
Total Property Tax Requirement – Sum of the above items, must agree to the
Personal and Real Property Tax Request on page 1.
Levy Setting Purposes
o
Used to break down the property tax request between levying funds.
o
This page assists the County Clerk in setting levies for individual funds of the
subdivision.
Documentation of Transfers
o
Indicate what fund the monies were transferred from, what fund they were transferred
to, amount of the transfer, and the reason for the transfer.
Correspondence Information
E-Mail Addresses – The Auditor of Public Accounts communicates with political subdivisions
by e-mail whenever possible. Please provide an e-mail address whenever available.
Board Chairperson – Include name and address of the Board Chairperson of the governing
board. NOTE: If Budget Document is to be used as an Audit Waiver, approval of the Audit
Waiver will be sent to the Board Chairperson via e-mail. If no e-mail address is included for the
Board Chairperson, notification will be mailed via the US Mail.
Preparer – Include the name, address, phone number, and e-mail address of the individual who
prepared the budget document.
Who To Contact with Questions – Please indicate whether questions regarding the Budget
Document and/or Audit Waiver should be directed to the Board Chairperson, Preparer, or Other
Contact.
Other Contact – If you would like to have someone other than the Board Chairperson or
Preparer contacted with questions regarding the Budget Document and/or Audit Waiver
complete the “Other Contact” area.
Changes in Contact Information – If there is a change in any of the Correspondence
Information or you obtain a new e-mail address after submitting your budget form, please
contact our office so we can maintain the most current information.
12.
LC-3 Supporting Schedule
The budget limitations have been incorporated into State Statute Sections 13-518 through 13522. The LC-3 Supporting Schedule is used to calculate restricted funds applicable to the lid
limitation.
Restricted Funds

As the limitation is on “budgeted” restricted funds, you need to compare the current
budgeted amount to the prior year actual amount when budgeting these receipts on page 2.

State Statute Section 13-518 defines restricted funds as:
o
Property Tax – Includes Real Estate and Personal Property
Section 3
BUDGET FORM INSTRUCTION MANUAL
Page 8 of 14
Budget Form Instructions
o
o
o
o
o
o

Payments In Lieu of Property Tax
Local Option Sales Tax
Motor Vehicle Tax
State Aid
 All governmental units - aid paid pursuant to section 60-3,202 (Pro-Rate Motor
Vehicle) and 77-3523 (Homestead Exemption). Note: Homestead Exemption
should not be budgeted as a separate line item. It is included within Property
Tax.
 Community Colleges - aid paid pursuant to section 90-517.
 Educational Service Units - State aid appropriated under section 79-1241 (Aid for
Core Services and Technology Infrastructure).
 Local Public Health Departments - aid as distributed under section 71-1628.08
(County Public Health Aid).
 Municipalities – aid paid pursuant to sections 18-2605 (MIRF), 39-2501 through
39-2520 (Highway Allocation and Incentive Payments), 60-3,190 (Motor Vehicle
Fee), 77-27,139.04 (Municipal Equalization Aid), and insurance premium tax.
Surplus Fees
 The transfer of a user fee, permit fee or regulatory fee which is used to fund a
service or function not directly related to the earning of that fee. Surplus Fees
can be used for other functions without being transferred to another fund.
Prior Year Budgeted Capital Improvements that was used as a lid exception on the
LC-3 Supporting Schedule, but was not spent or is not expected to be spent for capital
improvements.
All amounts should agree to the amounts budgeted to receive on page 2.
Lid Exceptions
If budgeted to be paid for with restricted funds the following items are lid exceptions:
Capital Improvements - Defined as follows:
i.
Acquisition of real property.
ii.
Improvements on real property.
Retirement of Bonded Debt
Retirement of bank loans and other financial instruments entered into before July 1, 1999,
for Fire Districts only.
Retirement of interest-free loans from the Department of Aeronautics for public airports
only.
Interlocal Agreement(s)/Joint Public Agency Agreement(s).
Repairs to infrastructure damaged by a natural disaster. The disaster must have been
declared a disaster pursuant to the Emergency Management Act.
Judgments. Except judgments or orders from the Commission of Industrial Relations, and
only to the extent that such judgment is not covered by liability insurance.
Property Tax Refunds
Section 3
BUDGET FORM INSTRUCTION MANUAL
Page 9 of 14
Budget Form Instructions
Public Safety Communication Project. State Statute Section 86-416 allows a fire district or
municipality to have a special tax for a Public Safety Communication Project. The special
tax has the same status as Bonded Indebtedness. Board minutes must be attached.
Ground Water Management. A NRD can exclude the dollar amount by which restricted
funds budgeted to administer and implement ground water management activities and
integrated management activities under the Nebraska Ground Water Management Act
exceed its restricted funds budgeted to administer and implement ground water
management activities and integrated management activities for fiscal year 2003-2004.
Public Facilities Construction Projects. State Statute Sections 72-2301 through 72-2308
allows bonds to be issued to finance Public Facilities Construction Projects. Resolution
must be attached. Review the statutes to determine if applicable for your type of political
subdivision.
When determining lid exceptions there are many factors that can only be determined by using
your own judgment. For example, it may not be clear if an item is budgeted to be paid for with
restricted funds or non-restricted funds. This should be discussed with the governing board if
you are unsure. Be sure not to claim lid exceptions that exceed the total amount of restricted
funds.
Total Restricted Funds for Lid Computation is calculated by taking the Total Restricted
Funds (A) minus the Total Lid Exceptions (B)
13.
Lid Computation Form LC-3 (ESU’s & Community Colleges see Specific Guidelines)
The law says no governmental unit shall adopt a budget containing a total of budgeted restricted
funds more than the last prior year’s total of budgeted restricted funds plus allowable increases.
The current year Restricted Funds authority is calculated by carrying forward the prior year
authority and applying applicable increases as follows:

Option 1 – This option will be used by most political subdivisions. Your subdivision
did not hold a townhall meeting last year to exceed the lid.
Line (1) – Restricted Funds Authority (Base Amount) is equal to the Total Restricted Funds
Authority from last year’s LC-3 Lid Computation Form

Option 2 – This option will only be used if a vote was taken last year at a townhall
meeting to exceed the lid on restricted funds for one year.
Line (A) – Line (1) of last year’s LC-3 Lid Computation Form.
Line (B) – Total Allowable Percent Increase from prior year’s LC-3 Lid Computation Form
less the Townhall Meeting approved increase from prior year’s LC-3 Lid Computation
Form.
Line (C) – Dollar amount of allowable increases excluding the vote taken equals Line (A)
multiplied by Line (B).
Line (1) – Calculated Restricted Funds Authority (Base Amount) is equal to Line (A) plus
Line
Section 3
BUDGET FORM INSTRUCTION MANUAL
Page 10 of 14
Budget Form Instructions

Allowable Increases
Base Limitation - All political subdivisions have the ability to increase their base of
restricted funds by 2.5%.
Allowable Growth – Growth per the Assessor (noted on current year Certification of
Valuation) divided by the prior year’s Total Valuation less 2.5%.
Additional 1% - An additional 1% increase is allowed if at least 75% of the governing body
votes to approve the increase. Please note this is 75% of the authorized board, and not just
75% of those present. If a 1% increase is approved, a copy of the resolution or board
minutes documenting that at least 75% of the governing body approved the increase
must be attached to the lid computation form.
Special Election - A governmental unit may exceed the applicable allowable growth
percentage by an amount approved by a majority of legal voters on the issue at a special
election. If a special election is held, a ballot sample and election results must be
attached to the lid computation form.
Townhall Meeting - In lieu of the election procedures, any governmental unit may exceed
the allowable growth percentage by an amount approved by a majority of legal voters at a
meeting of the residents,
Notice of the meeting must be published at least 20 days prior to the meeting.
At least 10% of the registered voters shall constitute a quorum for purposes of
taking action.
If a majority of the registered voters at the meeting vote in favor of exceeding the
lid, a copy of the record of that action shall be forwarded to the Auditor of Public
Accounts along with the budget document.
LB 289 (2007) requires “A record shall be made of the registered voters residing in
the political subdivision or village who are present at the meeting. The method of
voting at the meeting shall protect the secrecy of the ballot.”

Unused Restricted Funds Authority
The total unused restricted funds authority is calculated on the lid computation form.


14.
Must be greater than or equal to zero.
Must be included in the Notice of Budget Hearing.
Consequences of Noncompliance with Budget Limits
State Statute Section 13-522 states if the Auditor of Public Accounts determines from the budget
documents that a governmental unit is not complying with the budget limits, the following shall
occur:

The Auditor shall notify the governing body of this determination and notify the State
Treasurer of the noncompliance.

The State Treasurer shall then suspend distribution of State aid allocated to the
governmental unit until the budget has been corrected.
The funds will be held for six months until the governmental unit complies.
Section 3
BUDGET FORM INSTRUCTION MANUAL
Page 11 of 14
Budget Form Instructions
If the governmental unit complies within the six month period it shall receive
the suspended funds.
After six months, the suspended funds shall be forfeited and shall be
redistributed to other recipients of the State aid.
15.
Consolidating Property
For governmental units that have consolidated, the calculations made for the consolidating units
shall be made based on the combined total of restricted funds, population, or full-time equivalent
students of each governmental unit.
16.
Transfer of Financial Responsibility
If a governmental unit transfers the financial responsibility of providing a service financed in
whole or in part with restricted funds to another governmental unit or the State, the amount of
restricted funds associated with providing the service shall be subtracted from the last prior
year’s total of budgeted restricted funds for the previous provider and may be added to the last
prior year’s total of restricted funds for the new provider. Please provide information regarding
with whom services were combined.
Section 3
BUDGET FORM INSTRUCTION MANUAL
Page 12 of 14
Setting the Levy
The procedures for setting levies are as follows:





On or before August 1, all political subdivisions subject to county or municipal levy authority shall
submit a preliminary request for levy allocation to the county board, city council, or village board.
The preliminary request shall be in the form of a resolution. If the political subdivision fails to
make a preliminary request, they will not have the ability to override the levy allocation.
Each county board, city council, or village board shall adopt a resolution which determines a final
allocation of levy authority and forward a copy of such resolution to the chairperson of the
governing body of each of its political subdivisions. No final levy allocation shall be changed after
September 1 except by agreement between the county board, city council, or village board and the
governing body of the political subdivision.
School districts, community colleges, natural resources districts, educational service units,
municipalities, sanitary and improvement districts older than five years, and counties are subject to
the levy limits established in State Statute 77-3442.
A political subdivision may exceed the levy limits established or the final levy allocation
determined by the county board, city council, or village board by a majority of registered voters
voting in a primary, general, or special election at which the issue is placed before the registered
voters. A vote to exceed the limits or final levy allocation must be approved prior to October 10. A
governing body may pass no more than one resolution calling for an election during any one
calendar year.
In lieu of the election procedures, political subdivisions subject to allocation by a county or
municipality and villages may approve a levy in excess of the limits or final allocation for a period
of one year at a meeting of the residents. At least ten percent of the registered voters residing in the
political subdivision or village shall constitute a quorum. If a majority of the registered voters
present at the meeting vote in favor of exceeding the limits or final allocation, a copy of the record
of that action shall be forwarded to the county board prior to October 10.
NOTE: If a majority of the voters at a townhall meeting reject an override, the political
subdivision cannot subsequently call for a public election. The number of levy override elections
called by a citizen petition is limited to one per year.


The property tax request for the prior year will be the property tax request for the current year for
purposes of the levy set by the county board of equalization unless the governing body of the
sanitary and improvement district, natural resources district, educational service unit, or community
college passes by a majority vote a resolution or ordinance setting the tax request at a different
amount on or before October 13.
In order to adopt a property tax request different than the prior year tax request, the political
subdivision must conduct a special hearing and a notice of the special hearing must be published in
a newspaper at least five days prior to the hearing. This special hearing is not the same as the
hearing to adopt the budget, and it must be published, even if the notice of budget hearing was
posted.
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Setting the Levy
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The hearing notice must contain the following information: The dollar amount of the prior year’s
tax request and the property tax rate that was necessary to fund that tax request; the property tax
rate that would be necessary to fund last year’s tax request if applied to the current year’s valuation;
and the proposed dollar amount of the tax request for the current year and the property tax rate that
will be necessary to fund that tax request.
The levy process could include a vote of the people and a special hearing to change the property tax
request. If the property tax request is changed (higher or lower), the sanitary and improvement
district, natural resources district, educational service unit, or community college must hold a
special hearing.
The county board of equalization will levy the necessary taxes on or before October 15. The levy
shall include an amount for operation of all functions of county government and shall also include
all levies necessary to fund tax requests certified. The county board of equalization is responsible
in determining levies because the political subdivisions are only working with tax requests.
Levy Limit Form
Who must complete this form?
Counties
City and Villages
School Districts
Educational Service Units;
Natural Resources Districts;
Community Colleges; and
Sanitary and Improvement Districts
For detailed information, see the Specific Instructions by type of entity for this form.
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